Optum, a division of UnitedHealth Group, has signed an agreement to acquire DaVita Medical Group for a cash consideration of about $4.9bn.
DaVita Medical offers both primary and specialist care through approximately 300 medical clinics, 35 urgent-care and six outpatient surgery centres.
Optum plans to incorporate DaVita Medical into its primary, specialty, in-home, urgent- and surgery-care delivery services business, OptumCare, which works with over 80 health plans.
Optum said it expects the combined entity to enhance quality of care, improve costs and experience for patients through patient-centred ambulatory care services which make use of latest information technology.
The acquisition will expand the market reach of Optum’s strategic care delivery portfolio as DaVita Medical Group has medical groups in California, Colorado, Florida, Nevada, New Mexico and Washington.
Optum CEO Larry Renfro said: “Combining DaVita Medical Group and Optum advances our shared goal of supporting physicians in delivering exceptional patient care in innovative and efficient ways while working with more than 300 health care payers across Optum in ways that better meet the needs of their members.”
DaVita chairman and CEO Kent Thiry said: “Following this transaction, DaVita will continue to be a leader in population health management, with a focus on our US and international kidney care businesses.
“We also expect to pursue other investments in health care services outside of kidney care.”
Subject to regulatory approval and other customary closing conditions, the acquisition is scheduled to be completed next year.